According to the Senior Loan Officer Outlook Survey (SLOOS) by the Federal Reserve, US banks have tightened their lending standards on commercial and industrial (C&I) loans to firms of all sizes in the third quarter. The tightening was most widely reported for premiums charged on riskier loans, spreads of loan rates over the cost of funds, and costs of credit lines. Banks also reported a decrease in the number of inquiries from potential borrowers regarding the availability and terms of new credit lines or increases in existing lines. However, the survey shows a glimmer of hope for US commercial real estate as the tightening appears to be stabilizing. The report also indicates that credit conditions are tightening at a slower rate than previously feared. Despite the improvement, banks remain less willing to lend, leading to weaker demand for credit and loans for businesses and consumers.
The 30-year fixed mortgage rate dropped by 25 basis points to 7.61 percent, the largest single-week decline since July https://t.co/Gc70cqGSvk
MBA: Mortgage Applications Increased in Weekly Survey https://t.co/RpU2ihUGe1 https://t.co/4bfclNARrX
Mortgage rates plunge and demand finally inches back https://t.co/vLex3z2hN8 https://t.co/vLex3z2hN8
🇺🇸 United States MBA Mortgage Applications (WoW) $USD Actual: 2.5% Previous: -2.1% - https://t.co/orvmA6WYlS
🇺🇸 United States Mortgage Market Index $USD Actual: 165.9 Previous: 161.8 - https://t.co/orvmA6WYlS
🇺🇸 United States MBA Purchase Index $USD Actual: 129.0 Previous: 125.2 - https://t.co/orvmA6WYlS
🇺🇸 United States Mortgage Refinance Index $USD Actual: 347.3 Previous: 341.7 - https://t.co/orvmA6WYlS
We can clearly see the slowing of mortgage demand due to soaring rates driving weaker total consumer credit growth. Read more in tonight's Closer: https://t.co/QlubOmOkcp https://t.co/f4m58GSepA
WARNING: Banks’ willingness to lend has plummeted Making credit availability increasingly tighter Current levels have typically ended in recessions This time is NOT different https://t.co/FwOhaUXjKF
Glimmer of hope on US Commercial real estate as the Fed senior loan officer survey shows a stabilisation of the tightening (yes, I know, it's the second derivative, but better than nothing - though you could argue it was never going to go above 100% 😅) https://t.co/ZUf93ys6NI
The Fed's SLOOs report showed the credit crunch easing at tad but this latest US corporate bankruptcy data is just awful. The Fed's tightening is wreaking havoc and with US inc, especially the smaller caps and this will soon show up in a falling jobs. https://t.co/wSkxMpqG1v https://t.co/JlxvROyfrS
Senior Loan Officer Opinion Survey Oct '23: Past peak tightness? 1⃣Commercial & industrial loans: tighter standards/weaker demand 2⃣Commercial real estate loans: tighter standards/weaker demand 3⃣Residential real estate: tighter standards/weaker demand https://t.co/4GzSp4j6Vd https://t.co/5PSe92O9Xw
Fed report shows US loan officers see tighter credit, weaker demand https://t.co/nNyuOKbgzv
Fed report shows US loan officers see tighter credit, weaker demand https://t.co/jawWWYQJEp https://t.co/h7udFfiDi4
Fed report shows US loan officers see tighter credit, weaker demand https://t.co/VEwWTLXPKw https://t.co/9O0wejCNjG
Data from the Federal Reserve's Senior Loan Officer Outlook Survey (SLOOS) shows while banks are less willing to lend, the worst has come and gone. Read more in tonight's Closer: https://t.co/zDKRgsAETw https://t.co/5gbrQEOx1i
Banks kept lending standards extremely tight this month. 17/19 banks surveyed stayed tight & 2 banks tightened even further. Credit & loan demand for businesses & consumers is falling precipitously, as a result. Our economy is credit-based. Unemployment soon follows: https://t.co/1Fy1iW5JhH
Senior Loan Officer Survery Shows Modest Improvement Even As Credit Remains Tight, Demand Weak https://t.co/qpq9J8FOkq
US CREDIT OULOOK LESS GLOOMY THAN FEARED Q3 #SLOOS shows improving trend - Credit conditions tightening at a slower rate than previously, and the worst is probably now behind us. https://t.co/s93wFSFRlp https://t.co/DWF2sZzI7c
🔴 SLOOS: OF THE BANKS REPORTING WEAKER DEMAND FOR C&I LOANS, MAJOR NET SHARES CITED DECREASED CUSTOMER INVESTMENT IN PLANT OR EQUIPMENT; DECREASED FINANCING NEEDS FOR INVENTORIES, ACCOUNTS RECEIVABLE, AND MERGERS OR ACQUISITIONS; AND LOWER PRECAUTIONARY DEMAND FOR CASH AND… https://t.co/ShTTFhCAxM
🔴 SLOOS: FURTHERMORE, A SIGNIFICANT NET SHARE OF BANKS REPORTED A DECREASE IN THE NUMBER OF INQUIRIES FROM POTENTIAL BORROWERS REGARDING THE AVAILABILITY AND TERMS OF NEW CREDIT LINES OR INCREASES IN EXISTING LINES. A MODERATE NET SHARE OF FOREIGN BANKS REPORTED STRONGER DEMAND… https://t.co/2hJoB7SQcN
🔴 SLOOS: TIGHTENING WAS MOST WIDELY REPORTED FOR PREMIUMS CHARGED ON RISKIER LOANS, SPREADS OF LOAN RATES OVER THE COST OF FUNDS, AND COSTS OF CREDIT LINES, WHILE SIGNIFICANT OR MODERATE NET SHARES OF BANKS REPORTED TIGHTENING ALL OTHER TERMS ON C&I LOANS TO FIRMS OF ALL SIZES.
🔴 SLOOS: OVER THE THIRD QUARTER, SIGNIFICANT NET SHARES OF BANKS REPORTED HAVING TIGHTENED STANDARDS ON C&I LOANS TO FIRMS OF ALL SIZES.